Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - BlackRock (NYSE:BLK) stock gained after Goldman Sachs maintained its Buy rating and $1,115.00 price target following the asset manager’s second-quarter earnings report. The stock, currently trading at $1,111.46, sits near its 52-week high of $1,112.13, though InvestingPro analysis suggests the shares may be slightly overvalued at current levels.
BlackRock reported adjusted earnings per share of $12.05 for the second quarter of 2025, approximately 13% above Goldman Sachs’ estimate of $10.69 and 12% higher than consensus expectations of $10.80. The earnings beat was primarily driven by higher non-operating income, supported by gains from a minority investment in CRCL. With a market capitalization of $172.19 billion and a P/E ratio of 26.64, BlackRock maintains its position as a prominent player in the Capital Markets industry. InvestingPro subscribers can access 12 additional key insights about BlackRock’s valuation and growth prospects.
Operating income reached $2,099 million, representing a 12% year-over-year increase, though this figure missed consensus estimates by 2% due to higher general and administrative expenses and direct fund expenses. Net revenues of $4,847 million aligned with market expectations as slightly higher management fees offset lighter performance fees.
Assets under management (AUM) grew to $12.5 trillion, an 8% quarter-over-quarter increase and 3% above consensus estimates. The company reported $68 billion in total flows, including $46 billion in long-term flows, which translated to a 2.3% annualized organic growth rate compared to Street expectations of 3.0%.
The mix of flows skewed toward higher fee rate products, driving a 6% organic base fee growth for the quarter, excluding the impact of HPS, which closed on July 1st. The $12.5 trillion AUM base ended 4.6% higher than the quarterly average, with the addition of HPS expected to add approximately $215 million in quarterly base management fees.
In other recent news, BlackRock reported adjusted earnings per share of $12.05 for the second quarter of 2025, surpassing analysts’ estimates from both Citi and Jefferies, which were $11.07 and $10.54 respectively. Despite the strong earnings, revenue fell short of expectations, coming in at $5.423 billion, slightly below Citi’s estimate. BlackRock’s operating expenses were lower than anticipated, contributing to the earnings beat. Morgan Stanley (NYSE:MS) raised its price target for BlackRock to $1,247.00, citing an increase in assets under management and revised long-term net flows forecast. Additionally, BlackRock announced its acquisition of ElmTree Funds, a net-lease real estate investment firm with $7.3 billion in assets under management. The acquisition will be paid primarily in stock, with additional consideration based on ElmTree’s performance over the next five years. In partnership news, Jio BlackRock Asset Management, a joint venture between BlackRock and Jio Financial Services, raised over $2.1 billion in its first fund offering. This initial offering attracted investments from over 90 institutional investors and more than 67,000 retail investors.
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